[Federal Register Volume 63, Number 132 (Friday, July 10, 1998)]
[Notices]
[Pages 37418-37419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18430]



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DEPARTMENT OF LABOR

Pension and Welfare Benefits Administration


Proposed Extension of Information Collection Request Submitted 
for Public Comment and Recommendations; Delinquent Filer Voluntary 
Compliance Program

ACTION: Notice.

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SUMMARY: The Department of Labor, as part of its continuing effort to 
reduce paperwork and respondent burden, conducts a preclearance 
consultation program to provide the general public and Federal agencies 
with an opportunity to comment on proposed and/or continuing 
collections of information in accordance with the Paperwork Reduction 
Act of 1995 (PRA 95) (Pub. L. 104-13, 44 U.S.C. Chapter 35). This 
program helps to ensure that requested data can be provided in the 
desired format, reporting burden (time and financial resources) is 
minimized, collection instruments are clearly understood, and the 
impact of collection requirements on respondents can be properly 
assessed. Currently, the Pension and Welfare Benefits Administration is 
soliciting comments concerning the proposed extension of a currently 
approved collection of information, the Delinquent Filer Voluntary 
Compliance Program. A copy of the proposed information collection 
request (ICR) can be obtained by contacting the individual listed below 
in the addresses section of the notice.

DATES: Written comments must be submitted to the office listed in the 
addresses section below on or before September 8, 1998. The Department 
of Labor is particularly interested in comments which:
    <bullet>  Evaluate whether the proposed collection of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    <bullet>  Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
    <bullet>  Enhance the quality, utility, and clarity of the 
information to be collected; and
    <bullet>  Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submissions of responses.

ADDRESSES: Gerald B. Lindrew, Office of Policy and Research, U.S. 
Department of Labor, Pension and Welfare Benefits Administration, 200 
Constitution Avenue, Room N-5647, Washington, DC 20210. Telephone: 202-
219-4782 (this is not a toll-free number). Fax: 202-219-4745.

SUPPLEMENTARY INFORMATION:

I. Background

    The Secretary of Labor has the authority, under section 502(c)(2) 
of the Employee Retirement Income Security Act of 1974 (ERISA), to 
assess civil penalties of up to $1,000 a day against plan 
administrators who fail or refuse to file complete and timely annual 
reports (Form 5500 Series Annual Return/Reports) as required under 
section 101(b)(4) of ERISA and the Secretary's regulations codified in 
29 CFR part 2520. Pursuant to 29 CFR 2560.502c-2 and 2570.60 et seq., 
PWBA has maintained a program for the assessment of civil penalties for 
noncompliance with the annual reporting requirements. Under this 
program, plan administrators filing annual reports after the date on 
which the report was required to be filed may be assessed $50 per day 
for each day an annual report is filed after the date on which the 
report(s) was required to be filed, without regard to any extensions 
for filing. Plan administrators who fail to file an annual report may 
be assessed a penalty of $300 per day, up to $30,000 per year, until a 
complete annual report is filed. Penalties are applicable to each 
annual report required to be filed under Title I of ERISA. The 
Department may, in its discretion, waive all or part of a civil penalty 
assessed under section 502(c)(2) upon a showing by the administrator 
that there was reasonable cause for the failure to file a complete and 
timely annual report.
    The Department has determined that the possible assessment of the 
above described civil penalties may deter certain delinquent filers 
from voluntarily complying with the annual reporting requirements under 
Title I of ERISA. In an effort to encourage annual reporting 
compliance, therefore, the Department implemented the Delinquent Filer 
Voluntary Compliance (DFVC) Program (the Program) on April 27, 1995 (60 
FR 20873). Under the Program, administrators otherwise subject to the 
assessment of higher civil penalties are permitted to pay reduced civil 
penalties for voluntarily complying with the annual reporting 
requirements under Title I of ERISA.
    This ICR covers the requirement of providing data necessary to 
identify the plan along with the penalty payment. This data is the only 
means by which each penalty payment is associated with the relevant 
plan. With respect to most pension plans and welfare plans, the 
requirement is satisfied by sending, along with the penalty payment, a 
copy of the first page of the delinquent annual report, which under 
current procedures is sent to the IRS.
    Under current procedures, certain pension plans for highly 
compensated employees, commonly called ``top hat'' plans, and 
apprenticeship plans may file a one-time statement in lieu of annual 
reports. With respect to such plans for information collection 
requirements of the Program are satisfied by sending a completed first 
page of an annual report form along with the penalty payment. The one-
time statements are required to be sent to a different address within 
the Department. The Program is designed to allow the processing of all 
penalty payments at a single location within the Department.

II. Current Actions

    The Pension and Welfare Benefits Administration proposes to extend 
the currently approved ICR included in the Delinquent Filer Voluntary 
Compliance Program. This Program is intended to encourage, through the 
use of reduced civil penalties, delinquent plan administrators to 
comply with their annual reporting obligations under Title I of the 
ERISA. The only ICR included in the Program is the requirement of 
providing data necessary to identify the plan along with the penalty 
payment. The identifying data allows the penalty to be associated with 
the relevant plan. Participation of the Program has ranged from 
approximately 3,400 to 3,000 plans in each year since the Program was 
implemented.
    Type of Review: Extension of a currently approved collection.
    Agency: U.S. Department of labor, Pension and Welfare Benefits 
Administration.
    Title: Delinquent Filer Voluntary Compliance Program.
    OMB Number: 1210-0089.
    Affected Public: Business or other for-profit; Not-for-profit 
institutions.
    Frequency: On occasion.
    Average Burden Hours/Minutes Per Response: 21 minutes.
    Number of Respondents: 3,100.
    Total Annual Responses: 3,100.
    Total Annual Burden Hours: 1,085.
    Comments submitted in response to this notice will be summarized 
and/or included in the request for OMB

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approval of the information collection request; they will also become a 
matter of public record.

    Dated: July 7, 1998.
Gerald B. Lindrew,
Deputy Director, Pension and Welfare Benefits Administration, Office of 
Policy and Research.
[FR Doc. 98-18430 Filed 7-9-98; 8:45 am]
BILLING CODE 4510-29-M